Sometimes the magic happens behind the scenes. This is very much
the case in logistics operations as while it is often an area that is out of
sight and out of mind, expectations for near-perfect performance are placing
increasing stress on global logistics organizations.

At its Supply Chain Executive conference last year, Gartner did a
great job of summarizing the trends impacting logistics operations - environmental issues, risk and
compliance, international flow optimization and supply chain execution
convergence – but this is definitely a big, important and constantly changing
topic that requires ongoing consideration.

That is why we wanted to share an
Aviation Week story by Robert Trebilcock that includes comments by our own VP
of applications development Hannes Sandmeier. The article discusses the changing nature of logistics and
supply chain management and how its success increasingly depends on the transparency and
exchange of information. Trebilcock lists several reasons why information has
become so important including the increasingly just-in-time nature of lean
operations, the complicated and fragmented nature of today’s supply chains, and
lastly, logistics is now a competitive advantage for those who excel.

“For the
companies that can ship faster, plan better and provide more timely
information, logistics is an area where they can differentiate themselves,”
says Sandmeier.

But
what’s the point in discussing how much we need information without listing the
various technologies that enable this information. Each of these four
categories, enterprise-level systems of record, supply chain execution systems,
visibility and event management, and data collection, play a different role. The
most common system of record is an enterprise resource planning (ERP) system
that allows organizations to efficiently plan what parts and components will be
needed and where.

Sandmeier
says,“You want to optimize your
inventory across all of your locations at the highest possible service level,
given your budgetary constraints. If you're only operating three locations,
that's not so difficult to do. If you have 200 locations, you need to
understand the fleet of parts you are trying to address. Otherwise, there's no
way even the best transportation system can move those parts around in a
cost-effective manner.”

Well
said!

To
meet expectations for near-perfect performance across today’s complex supply
chains, visibility is no longer an option, it’s a necessity. In fact, with the right technology in place, it
is possible to make real-time, informed decisions that support efficient
operations and meet the increasing expectations being placed on global
logistics organizations.